Thinking about hiring full time employees? It’s important to consider the benefits you’re required by law to provide. Employee benefits are a major factor in their consideration of working for your company.
Two jobs that offer the same salary and a similar commute could hinge on the deciding factor of which employer provides better benefits.
Employee benefits fit under two categories: Those required by law, and those provided by the employer that are not required by law.
In this post, we will talk about the different benefits that are required by law when you hire full time employees and what you need to do to ensure you’re business is operating legally.
Social Security Taxes
If you hire full time employees, you have to pay Social Security taxes. You must match the rate your employees pay out of their paychecks.
Helpful resources from the Small Business Administration:
- Information and Resources for Employers
- Instructions for Hiring Employees Not Covered by Social Security
Depending on the state your business is located in, you might be required to pay unemployment insurance taxes when you hire full time employees. If you’re in a state that requires it, you’ll need to register with your state’s workforce agency.
Find your state workforce agency here.
Disability insurance is only required in certain states. The purpose of this type of insurance is to provide partial wages to eligible employees who are dealing with non-work related sickness, conditions, or injuries.
The states and U.S. territories that require disability insurance are as follows:
- New Jersey
- New York
- Puerto Rico
- Rhode Island
Family and Medical Leave Benefits
The Family and Medical Leave Act (FMLA) requires employers with 50 or more employees and all public employers to provide leave for the following scenarios:
- Birth and care of a child; Placement for adoption or foster care
- Care of an immediate family member (parent, spouse, or child) with a serious health condition
- Care of employee’s own serious health condition
FMLA requires that you allow for up to 12 weeks of unpaid leave for any of these scenarios on the condition that the employees’ job will still be there when they return. It also requires that you keep up group health coverage during that time as if the employee did not take leave.
Other leave benefits are optional for employers to provide, but not required by law. These include:
- Holiday/vacation leave
- Jury duty
- Personal leave
- Sick leave
- Funeral/bereavement leave
If you hire full time employees, you must have Worker’s Compensation Insurance. You can obtain this type of insurance from your state’s Worker’s Compensation Insurance program, by self-insuring, or through a commercial insurance carrier.
Feeling overwhelmed by these benefits?
If it seems overwhelming to pay for these required benefits, you should look into hiring freelancers or contractors to outsource your tasks to. Our company provides virtual receptionist and live chat services. Other companies provide accounting services, content writing, and more. You can save a lot of money on taxes and benefits by outsourcing instead of hiring full time.